We refinanced our home and added a home improvement loan, which doubled our home value. Are we able to deduct any portion of the home improvement loan, or down payment?

joehennes1 · ‎June 6, 2019

Anita01 · ‎June 6, 2019

No, the down payment is not deductible. Adding a loan does not change the value of your home at all. Only the improvement itself can add to the value of your home, after the improvement is made.

Interest on the loans is deductible in full if the total amount of the loans is less than $1,000.000 for 2017 and up to $100,000 for home equity loans This limit drops to $750,000 in 2018. You may also have some deduction for any points paid in the refinancing. The program will walk you through all these entries under Federal taxes , Deductions and credits, My Home.

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Anita01 · ‎June 6, 2019

No, the down payment is not deductible. Adding a loan does not change the value of your home at all. Only the improvement itself can add to the value of your home, after the improvement is made.

Interest on the loans is deductible in full if the total amount of the loans is less than $1,000.000 for 2017 and up to $100,000 for home equity loans This limit drops to $750,000 in 2018. You may also have some deduction for any points paid in the refinancing. The program will walk you through all these entries under Federal taxes , Deductions and credits, My Home.

We refinanced our home and added a home improvement loan, which doubled our home value. Are we able to deduct any portion of the home improvement loan, or down payment?